Warehouse boom in India as firms shift from China

26 Mar 2024 CW Team

A sprawling industrial park in southern India sees a surge in modern warehouse construction, meeting the demands of companies diversifying supply chains beyond China.

Greenbase industrial park, near plants run by Apple supplier Foxconn and truckmaker Daimler, is in high demand among European and American companies.

To address the demand, Greenbase aims to quadruple its industrial park space to 20 million-square-feet with an $800 million investment.

India's economic growth surpasses advanced nations, driving a rush for leased warehouse space, particularly in the last quarter of 2023.

Developers like Greenbase and Panattoni are scouting land nationwide to meet demand from companies expanding manufacturing beyond China amid rising tensions.

India's infrastructure development, including ports and highways, attracts developers like Panattoni, which plans to build warehouse complexes near New Delhi.

Despite surging demand, India leases fewer warehouses than China, offering immense growth potential.

Investment in smaller warehouses is also rising, reflecting diverse strategies amid land scarcity and rising prices.

Land acquisition processes can be lengthy, impacting development timelines in India's competitive real estate market.

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